The home repair and insurance firm HomeServe (Dusseldorf: XHSA.DU – news) has announced it is planning to cut 200 jobs in the UK as it continues to lose customers.

HomeServe said total customer numbers in 2012 could fall by 8%, down from its previous estimate of 5%.

This would mean renewal revenue in 2013 would be around £10m lower.

Adjusted pre-tax profit for the year ending on March 31 this year, however, was expected to be in line with market expectations.

HomeServe had to suspend sales in October for a review of thousands of customer complaints about its sales procedures.

It was also forced to retrain its call-centre staff after mis-selling practices in the UK.

The company said that as a result it now has fewer UK customers, but it insisted that retention remains strong.

The firm added that a prolonged marketing delay would hit customer numbers harder than previously expected.

The cost of the restructuring that HomeServe had to do, which also includes outsourcing its customer complaints division to a local third party, would now cost about £20m this year.

This compared to the £10m it estimated in November (Stuttgart: A0Z24E – news) last year.